5 Keys To Understanding Syros Pharma's ASH Presentation

Syros Pharmaceuticals Inc SYRS reported initial clinical data over the weekend from an ongoing Phase 2 study of its SY-1425 and SY-1365 therapies for the treatment of genetically defined acute myeloid leukemia, or AML, and myelodysplastic syndrome, or MDS. 

The Analyst

Oppenheimer's Leah Rush Cann maintains an Outperform on Syros' stock with an unchanged $28 price target.

The Thesis

Rush Cann presented five key points to better understanding the data release during the ASH conference:

1. SY-1425 is a small molecule agonist to retinoic acid receptor alpha, and it's important to highlight that it is evaluated in a Phase 2 trial with a genetically defined subset of patients.

2. The analysis of SY-1425 includes "48 patients and an overall response rate was 4.3 percent and stable disease of 57 percent," Rush Cann said. Investigator-reported hematologic improvement was observed in 25 percent of patients with relapsed/refractory AML, 43 percent of patients with relapsed/refractory high-risk MDS and 8 percent of patients with low-risk MDS. 

3. "Immunophenotyping of patients' samples pre- and post-SY-1425 treatment demonstrated a strong induction of CD38 protein expression."

4. SY-1365 strongly inhibited the proliferation of hematologic malignancy cell lines in vitro as well as in in vivo animal models.

5. "The demonstration of myeloid differentiation, including CD38 induction, strongly supports the ongoing development of SY-1425 in combination with HMAs and anti-CD38 therapy."

Price Action

Shares of Syros plunged to a new 52-week low of $6.30 before rebounding to $8.07, which implies a decline of nearly 35 percent on the day. Shares were trading down 26.03 percent at $9.15 at the time of publication. 

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